Continuing the IFMX discussion and more... Message Board

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Strategies & Market Trends : Continuing the IFMX discussion and more...

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To: Melissa McAuliffe who wrote (165)	9/10/1997 10:37:00 PM
From: Robert Graham	of 206

The most apparent resistance points are at the stock's 52-week high of 63 1/3, and the 52-week low of about 30 1/2. These will prove to be very significant and strong support and resistance levels. I can tell this with a fair amount of certainty without looking for validation. Another "peak" that sticks out on the monthly graph is at 56 3/4. The resistance at 52 is another readily apparent resistance level. Even the significant resistance at 38 is revealed by this chart. So I suspect all of the above resistance lines (or support depending on your perspective) will prove to be strong and should be considered a significant technical event when breached. Of course it is important to wait for a support or resistance to be validated before taking action on your trades. The other points of resistance that you have mentioned also stand out and can can be considered significant. However, I personally would want to look at the daily chart to confirm their strength. Still, you can see how a quick look at the monthly chart can give you an idea of some of the significant resistance points to look for on the daily graph. For a more accurate reading, I would always go to the daily chart to verify, for the weekly trading range can skew an attempt at an accurate read of the price points for your daily trading needs. Taking a closer look at the weekly chart, the trend appears to be an uptrend that started at the first week of May after a very healthy bounce from the support at 30 1/2. This developed from a broadening formation. The lower trendline of this uptrend has been validated twice. The volume since the bounce has maintained a relatively high level which is a good sign of a strong, healthy uptrend. Volume is validating upward moves by the stock which is another good sign for the continuation of this uptrend. So the longer term trend for this stock is an established uptrend that is continuing despite today's price action of the stock. Technically the shorter term trend for this stock has not been established yet. But since the longer term trend is an uptrend for this stock, it is likely that the shorter term uptrend will establish itself with this stock. Note also that the weekly trendline is at about 52. So if the week closes below 52, it will call into question the longer term uptrend of this stock. Bob Graham

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